Expenses and what to do

Excuse the stupid question but new to this bookkeeping caper.

If I put my mileage through a a purchase and then tagged it as paid from the proprietor acct, do I then move the money from my business account to my personal or is this just a tracking exercise? How do I get the money or is this offset against profits so I don’t pay as much tax thus can get more money.

I am confused.com.

I assume any profit at the end of the year is my salary as I get taxed on it?

I personally don’t claim mileage, but by creating a purchase alone (regardless of where it’s paid from) lowers your profit, so yes it would therefore reduce your tax somewhat.

If you oay for it from your personal account, you can do a transfer from the business account to your personal account to cover the expense. However, as a sole trader, legally there’s no separation between your business and you. So, you’re quite right - it would just be a tracking exercise.

Hope that helps!

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